Why Cashless Is Not Ok

Article By - Lydia Copeland

I am a huge foodie! so I am always trying as many restaurants, coffee shops and food markets as possible. I love experiencing a restaurant's take on a favorite dish, tasting new coffee flavors or trying something new! 

In my travels to cities across the US, I've noticed more and more food establishments becoming "cash-less", "cash-free", "card-only". From small shops, some local chains to even sports arenas, it's become very noticeable.  

"Cash-less" is more common in US cities as rural areas still overwhelmingly prefer cash. "Cash-less" practice is even less common in other countries, many travel blogs/advisories state the importance of carrying cash on your travels, especially if you want to support small businesses. 

Before I really didn't carry cash but seeing an increase in the food businesses operating this way, made me wonder why a business would do this and it's impacts, what about the people that don't have cash? 

So, I did some research, why would a business go cash-less? I found an extensive list of reasons, some noted below. To me it felt like these reasons were tied to reactions from other problems, like using "cash-less" as a band-aid for a larger issue: 

• "We've been robbed too many times, so we don't keep cash in the restaurant" 
• "It takes too long to manage the cash in the register" 
• "My employees don't know how to handle money or make change"
• "Exchanging cash spreads germs" 

These complaints and issues are common and very real in food establishments, but the root causes of these issues should be addressed. In an industry focused on hospitality, why disqualify customers from using your business? Let's look at the demographics of the people that are being left out in a "cash-less" society. 

Studies by the FDIC (1), provides data on people who rely on cash payments. In this report they are categorized as "un-banked", not having bank accounts and relying on cash for purchasing. 

 

These metrics show us who is impacted by this policy, there is a disproportionate impact of "cash-less" businesses on non-white and no-degree households. In a society already intertwined with unintentional (and intentional) discrimination, should we support systems that add to this divide? 

There has been a ton of debate, legal review and consumer action in this space. The impact on non-white, un-housed and no-degree groups are so clear that many governments have stepped in. Some cities and states have outlawed "cash-less" businesses, like in NYC, DC, San Francisco and Miami. 

What does "cash-less" say about a business? 

Think about what denying a customer because they only have federal legal currency to pay with communicates. They have the money to pay but you as a business, are deciding not accept it, This is absurd. Turning someone away, that made the decision to support your business, this is not good customer service or hospitality. 

Cash is the most accessible, tangible and defined form of value in our society. When a business denies your cash payment, they are not only not denying federal funds, they are also telling the customer "I don't accept you and the monetary systems you have access to", "I don't care why or that you only have access to cash". Is it worth saying this to anyone, epically in our community? 

Let's also think about the service workers - Cash tips are key to their (should be illegal) $3 an hour pay. "Cash-less' systems mean service workers have to wait longer to be paid AND when it makes it to them it's less than they earned due to fees. I see this loss in value as an unnecessary waste in rightfully paying service workers what they've earned.  

I really think hard when supporting these places. Without careful consideration these practices are an attack on accessibility, leaving people out of experiences that should be for everyone. 

Don't even ask me about QR Online-only menus in physical restaurants...

Even if you have a bank account, Anyone who has ever cleaned out their change and scrapped together enough for something, had their wallet stolen or even just didn't want to use a card to pay somewhere, this impacts all of us directly, indirectly, one day or another. 

It is our responsibility to vote with our dollars in the spaces that promote what we want to see in our community. I'll still be taking cash out at the grocery store to have on hand to pay at restaurants and food delivery, this little step goes a long way. 

Thanks for reading! I hope this article helps you connect to the impact of "cash-less" systems in our spaces!

Citations 

(1) A Closer Look At The Unbanked: Cash-Only Households Versus Those That Use Prepaid Cards or Nonbank Payment Apps | FDIC.gov